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Area couple buy Tioga property

Local woman to manage the facility

by: Shanna Foster-Guiot
Tribune writer

Todd Johnson, the new owner of the Tioga, talks with his aunt, Sharon Stirewalt, about her new position
as manager of Tioga Suites this morning. The facility will lease a restaurant and bar on the first floor and
offer 55 condominiums on the upper floors primarily for senior citizens. Several of the rooms will be used
as hotel rooms as well. Johnson hopes to open both the living facility and the restaurant no later than the
end of the year.

The Tioga has been sold and the new management has a familiar name.

Todd and Amy Johnson, Erie, have signed a contract to purchase the Tioga Hotel and plan to close on
the deal Aug. 20.

Sharon Stirewalt, owner of Sharon's Garden Station and current interim director of Main Street Chanute,
will manage the facility. She is Todd's aunt.

The historical downtown Tioga building will be developed as an independent living center for retired
individuals. It will be called Tioga Suites. The new owners also plan to reopen the restaurant and bar that
occupy the first floor of the building.

The Johnsons own the Big Hill Lodge in Cherryvale as well as several investment properties in Labette,
Montgomery, Neosho and Allen counties. Todd has been the vice president of Peoples State Bank in
Cherryvale for 12 years, while his wife teaches pre-school in St. Paul.

"We share my aunt's enthusiasm for downtown Chanute and especially for the historic Tioga property,"
Todd Johnson said in a press release. "We first toured the building in March and immediately fell in love
with it."

The contract between the Johnsons and Agemark Corporation, the current owner of the Tioga, has no
contingencies attached to it other than a clear title. Malson Real Estate's Sheri Calhoon, the agent who
sold the building, said getting a clear title should not be a problem.

"There are some liens that need to be taken care of," Calhoon said. "Those will be dealt with."

Kurt Kluin, attorney for Agemark, is working on ways to rid the title of those liens that originated from
unpaid bills left by the previous owners. Agemark representatives were not available for comment prior to
press time.

The effort by previous investors to develop the building as an assisted living facility failed early in 2003
due to several factors, including the denial of a city loan.

The Johnsons will also apply for a loan through the city's Economic Development Revolving Loan Fund. A
meeting was set for today at noon to discuss the loan with committee members.

Brad Eilts, director of economic development for the city of Chanute, has reviewed the Johnsons'
application and is impressed with what he saw.

"I think (Todd Johnson) is a very sharp individual with a detailed business plan. The collateral position is
good and this person will be worthy of the loan," Eilts said. "There just aren't many projects that I can
think of that would be a better investment than reopening the cornerstone of our downtown."

Eilts looks forward to seeing the Tioga brought back to life.

"It's going to have a ripple effect throughout the whole city and especially downtown," he said. "This will
show the naysayers and everyone that there are great things happening in Chanute."

If the loan is approved, it will provide some of the funds necessary to continue the renovations that were
started by the previous investors.

Todd Johnson said that he has estimates on roof replacement and repairs to the elevator. Those will be
be top priority.

"We've got three levels of roof that will be replaced with a modified roofing system that's guaranteed for
20 years," Johnson explained. "I was able to negotiate with the elevator company, too, and have entered
a five-year contract with them and they will bring (the elevator) up to code."

A total of 55 suites will be renovated and sold as condominiums primarily to house senior citizens. A
solarium will be built on the second story patio and a recreation and eating area will comprise the
basement floor.

"Some rooms will be furnished as hotel rooms, too, and we're starting with five," Johnson said. "I expect
the hotel portion of the building to be bigger than that depending on how much interest we have locally."

Johnson reported that three of the five floors of rooms are 99 percent complete and he hopes to have
condos available as soon as mid-November. The first-floor restaurant should be open prior to that.

"We've had a lot of interest (in the leased restaurant space) and I want to have a variety of restaurants to
choose from," Johnson said. "There's no one type I'm looking for, but it'll be a real nice sit-down meal."

In his press release, Johnson also mentioned the importance of parking to the success of the facility.

"The city of Chanute made a substantial offer to a previous prospective buyer to add parking in the area
and we will continue working with the city to pursue additional public or private parking near the hotel,"
Johnson said. "We have some ideas in the same price range that might not be as controversial as those
presented in the past."

Stirewalt will manage all aspects of the Tioga Suites while the Johnsons continue with their regular jobs.
She plans to sell her garden business.

"I'm very excited about the project of the Tioga," Stirewalt said. "I have a passion for downtown and it's a
wonderful way to be involved with everything on Main Street."

08/05/2004; 12:48:22 PM